I'm 58 With $1.8 Million Saved. Here's How I Stress-Tested My Tax Plan Before Retiring Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Quick Summary A 58-year-old with $1.8 million saved looked financially secure, but small tax and timing mistakes could still derail retirement. Before retiring, you can work with a financial advisor through SmartAsset to pressure-test withdrawal strategies, Roth conversions, and long-term tax exposure. At age 58, ...

Once you turn 65, you may be inclined to enroll in Medicare right away. In fact, you can actually sign up for Medicare up to three months before the month of your 65th birthday to ensure that you have coverage in place when you need it. But you should know that Medicare may not be the wonderful program you expect it to be. Here are three big problems with Medicare you should know about before retirement so you can plan accordingly. Where to invest $1,000 right now? Our analyst team just revealed what they ...

It's an unfortunate but true reality that the traditional idea of longevity isn't quite what it is used as the risk associated with running out of money too soon is very real. This reality is what is driving many different kinds of retirement calculations as well as safe-withdrawal-rate conversations, and arguably keeps many financial planners... The New Longevity Risk Most Retirement Plans Still Ignore. ...

Key Takeaways Pre-retirees heavily invested in AI stocks may be taking on more risk than intended and should consider rebalancing their portfolios to maintain diversification, according to personal finance expert Jean Chatzky. For those concerned about a recession, keeping a few years’ worth of expenses in cash or fixed income in retirement can help you avoid selling longer-term assets during market downturns. A lot has happened in the world of personal finance in the past year—from the passage of n ...

Core Insights - A significant majority of American employees express confidence in their retirement planning, with 79% feeling at least somewhat knowledgeable about it and 71% believing they can save enough for retirement, despite concerns about stock market volatility [1] Group 1: Retirement Fears - Over half of U.S. workers (58%) fear a stock market crash occurring right before their retirement, which is identified as 'sequence of returns risk' [3] - This risk implies that a market drop of 20% in the year of retirement could force individuals to sell stocks at a loss, potentially shortening their portfolio's lifespan [3] - To mitigate this risk, experts recommend building a liquidity buffer by maintaining a few years' worth of essential living expenses in high-yield cash accounts or short-term bonds [4] Group 2: Addressing Market Concerns - The second most common fear (50%) among workers is that the market will not provide sufficient long-term returns to support retirement [5] - Diversification across asset classes (stocks and bonds) and regions (U.S. and international markets) is suggested as a strategy to manage risk and enhance return consistency over time [6] - Experts also advise adjusting asset allocation over time to better align with changing market conditions [6]

Over the last few decades, anyone who is moving into a midset of retirement planning has been fixated on one thing and only one thing: the size of a portfolio. The mindset has long been that if you accumulate enough money, you'll hopefully enjoy your golden years comfortably. The challenge with this argument is that every quarterly statement leads to the same question, and that is "Do I have enough to keep going?" Any time the market declines, it might feel like panic is setting in, while gains give you a ...

Core Insights - The article emphasizes the importance of financial advisors in retirement planning, highlighting that over 90% of wealthy Americans utilize their services and report high satisfaction levels [2][3] - It discusses the challenges posed by rising living costs and the increasing concern among Americans about running out of money during retirement, with 64% expressing this fear [5][8] - The article outlines six key milestones for effective retirement planning, including debt elimination, healthcare planning, and social engagement [4][7][15] Group 1: Financial Advisors - Financial advisors are fiduciaries, legally obligated to act in clients' best interests, and can help create personalized retirement plans [1][2] - A significant percentage of wealthy Americans (over 90%) work with financial advisors, indicating a trend towards professional financial guidance [2][3] Group 2: Retirement Planning Challenges - The rising cost of living is making retirement planning increasingly difficult, with 64% of Americans worried about financial security in retirement [5][8] - Many retirees face debt burdens, with 72% of Americans over 55 having accumulated some debt, impacting their financial freedom [8] Group 3: Key Milestones for Retirement - The article outlines six milestones for retirement planning, including eliminating debt, finding a good healthcare plan, ensuring loved ones are taken care of, preparing a mental and social plan, and conducting a lifestyle trial run [4][7][15] - It highlights the importance of planning for unexpected medical expenses, which are a leading cause of debt among retirees [10]

Core Viewpoint - The recent sharp decline in gold prices, particularly affecting the SPDR Gold Trust (GLD), has raised questions about the role of gold in retirement portfolios, especially after a significant rally earlier in the year [1]. Group 1: Gold Market Dynamics - SPDR Gold Trust (GLD) reached record prices in late January before experiencing a rapid decline triggered by President Trump's nomination of Kevin Warsh as Federal Reserve chair, which was interpreted as a signal for a more hawkish monetary policy [1]. - The selloff was exacerbated by speculators heavily investing in leveraged gold futures, leading to forced liquidations when prices fell, further accelerating the decline [1]. - The Chicago Mercantile Exchange's increase in margin requirements over the weekend contributed to additional selling pressure, transforming a policy shift into a leverage-driven rout [1]. Group 2: Investment Considerations for Retirees - Gold does not generate income, dividends, or cash flow, which poses a challenge for retirees who typically seek stable income sources; it relies solely on price appreciation [1]. - Current Treasury bond yields stand at 4.24%, offering predictable cash flow, making them more attractive compared to non-yielding gold for conservative investors [1]. - While a modest allocation of 5% to 10% in gold can provide diversification against risks like currency crises, retirees needing income may view GLD more as a hedge than a foundational investment [1].

Core Insights - The average ideal retirement age for Americans is 58, which is significantly younger than the actual retirement age [1] Group 1: Retirement Planning Strategies - Early retirees set clear retirement targets rather than just saving consistently, which helps in making strategic financial decisions [3][4] - Having a defined retirement goal transforms saving from a passive activity into a strategic plan, leading to increased contributions and intentional investment choices [4] - Early retirees knew their financial targets, which guided their daily spending decisions, prioritizing investments over discretionary purchases [5][6] Group 2: Lifestyle and Financial Goals - Early retirees worked backward from their desired lifestyle in retirement, estimating annual expenses to create a realistic savings target [7]

That means your retirement savings should be higher than that $1.24M high water mark from Northwestern Mutual, provided you believe it aligns with your living situation. If you spend $50,000 a year in expenses, that means adding between $150,000 and $250,000 to your retirement target so you have the flexibility to time your exit.Translation? If your retirement plan is riding the market rollercoaster, you could be in for a sharp drop when you’re hoping for smooth sailing. To soften the blow, Orman recommends ...